Unions demand end to 12% penalty for forced early retirees

Local pensionsTop Newsunions Unions demand end to 12% penalty for forced early retirees Mousiouttas Sintaxeis (2) Relevant News Second Cyprus drowning also occurred near breakwaters, no measures taken 27 August 2026 Unions demand end to 12% penalty for forced early retirees 27 August 2026 Cyprus sets new timelines to solve waste management problems 27 August 2026 Angelos Angelodimou 27 August 2026 FacebookXWhatsAppEmailPrintViber Public sector unions are demanding the full abolition of a 12% pension penalty for workers forced to retire before the age of 63. They argue they do not choose early retirement but are required to take it, and that the penalty was the most significant of six issues raised yesterday by state sector organisations at a meeting at PASYDY’s offices, held to examine the government’s pension reform bill, according to philenews information. The six issues raised at the meeting also included the coefficient used to calculate the basic and supplementary pension, the actuarial reduction for early retirement, the sustainability of the Social Insurance Fund, support for low-income pensioners, contribution payments for those employed after the age of 65, and the case of those who by law retire before the age of 63, including police, firefighters, military personnel and primary school teachers. Police officers pushed the 12% penalty issue most strongly, with military personnel and teachers raising it to a lesser extent, sources said. Police, firefighters, military personnel and primary school teachers are required to retire not only before the official retirement age of 65, but also before 63, the age at which early retirement and the actuarial penalty apply. Police officers must retire at 62, while military personnel retire considerably earlier, in some cases as young as 55 or 57, according to information from yesterday’s meeting. The unions argue that since these groups are required to retire below 63, the 12% penalty should be scrapped for them and they should receive their full pension. Public sector workers do not currently receive the full Social Insurance Fund pension, only the basic portion, for which their contribution rate is lower than that of private sector workers. Unions also sought clarification on the period after the government’s proposed reform takes effect, when the penalty is expected to be calculated on a unit basis, requesting more information on how that system would work. The issues raised at yesterday’s meeting will be brought to tomorrow’s session of the Labour Advisory Body. Labour Minister Marinos Moushouttas has said on several occasions that any request carrying an additional cost must be accompanied by a proposal for an equivalent reduction elsewhere, to keep the budget balanced. The Labour Advisory Body is expected to hold a second consecutive session tomorrow, Friday, August 28. Social partners are not expected to take a formal position on the government’s pension reform bill at that session, which is expected to focus on clarifications and questions that have arisen. Proposals may be submitted by social partners on points of disagreement, one of which is the 12% penalty. Unions are largely unsatisfied with the government’s proposal and are preparing counter-proposals to secure greater benefits for those forced to retire early at 63. Subscribe to our Newsletter Latest News Second Cyprus drowning also occurred near breakwaters, no measures taken Cyprus sets new timelines to solve waste management problems Elderly driver seriously hurt after car hits house wall in Paphos Justice ministry denies illegal phone use after inmate’s podcast interview The Iran war has exposed Europe’s fossil-fuel vulnerability Crosta Nostra: Southern Italy on a plate Binge it or skip it: Something Very Bad Is Going to Happen – A match made in hell Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.